I can't even begin a valuation on it as a business, It has been a site for 4 years, In business as a site for how long? if it was in business in the last 4 years, what was the revenue per year? how much money did the owner make after expenses per year? why did the site business take 3 years and 3 months to escalate earnings? too many question marks would have to be answered and confirmed to actually give the business a fair valuation.IMO
On the $400K in 9 months, The domain name Translate.com they may have overpaid just a bit on the estimation of the value of the business and domain name together, If I look at the 400K it has made in made in 9 months + estimation it can continue to make that same revenue + 453K for the domain name, I can come up with exact figure it sold for, But those figures would be based on speculation of income from the business minus the domain name.
Bring in the level of competition = negative - Google loves and dominates these areas when they like, maps, earth, translation, they love it. A multibillion-dollar company as well, that is simply one competitor. to mention Rosetta Stone as well.
I think it is a high-risk investment IMO, The domain name is great, I don't believe the name alone would sell for more than $450K though IMO. so escalation must happen quickly, marketing, design, script, branding, as the site is, it is much like a framed up house without walls, paint, countertops, flooring airconditioning and heating, It has good bones but needs finish out IMO. All that cost will reduce profit and devalue the business for a two year period, that if after all is done, the business is able to generate 1.4M the first year will it come out equal, just my thoughts